Industry and Artificial Intelligence

In the past, there was a clearly visible line between industrial companies and computer companies. You were either one or the other. There was little traffic between the two spheres. For a long time, it was enough for industrial companies to view computers in purely functional terms. Computers changed neither their business model nor their products. In contrast, our current age is characterized by rapid technological change. Connectivity and digital transformation are changing the dynamics of markets faster than ever before, introducing artificial intelligence into physical products, and creating new business models.

Linking artificial intelligence with domain expertise  

Industrial companies, especially consumer goods manufacturers, will be all the more successful the more they understand about the possibilities of technology themselves. Today, it's no longer just a matter of using software developed by the manufacturer as flawlessly as possible. It's about identifying future applications from the possibilities of new technology, combining them with your own strengths, and bringing a holistic combination of technology and your own domain expertise to the market. At Henkel, we are taking on this challenge. Our experts drive the development of new, data-driven solutions in our innovation hubs. When it comes to technology, the best is always created in teams.

At Henkel dx Ventures, our venturing arm founded in 2021, we invest specifically in sustainability, digital commerce and innovations in the field of research & development. We are investors and industrial users at the same time – which gives founders who work with us an important head start.

In addition, we have entered transformative, strategic partnerships with Adobe, SAP and Microsoft. As an industrial and consumer products company, we are joining forces with these world-renowned software companies on an equal basis. These are collaborations for mutual benefit. Everyone contributes what they do best. Together, we create the best possible combination of domain expertise with computer knowledge.

Artificial intelligence redefines businesses

Artificial intelligence is the most significant technological development of the past decades, comparable to the steam engine, electricity, telephone, space travel or the internet. AI is transforming both the economy and society.

For Henkel, AI is already proving to be highly effective. We are automating processes that had to be done manually just a year ago. We are accelerating and improving customer service. We are optimizing work in research and development labs to accelerate innovation processes. Marketing, finance, IT, and customer experience offer numerous other possible applications. AI is enabling shopping experiences that, in terms of convenience, accuracy, and personalization, were unimaginable just a short time ago. But above all, we're using artificial intelligence to help our customers have better experiences.

RAQN: Our answer to the digital revolution

Customers would like to see a higher level of personalization in shopping. That's why we at Henkel are driving increased accuracy in marketing with the RAQN digital business platform.

RAQN is a multifunctional tool we developed in close collaboration with Adobe that connects digital commerce and marketing with the Consumer & Customer Intelligence ‏(CQ) Engine. This means that individually tailored content is offered along the customer journey based on collected data. After just two years, more than 350 web domains from more than 40 brand clusters worldwide are already running on the RAQN platform.

Another example is SalonLab&Me. Using a smart analyzer, the hairdresser scans the hair of his customers and provides hyper-personalized product recommendations and hair care tips. Our RAQN platform also forms the basis for this business model, bringing us one step closer to the hair care of the future.

A brief look into the ‏(near) future

Without a doubt, across the board, artificial intelligence will lead to productivity and efficiency gains, as well as revenue growth. However, in the current AI surge, industrial companies need to think much bigger. AI will turn the rules of today's value chains and their players upside down, similar to what the internet has done, only much faster. Value streams will be determined by consumers to an even greater extent than in the internet age. Further stages of the value chain will be eliminated. Industrial companies in the AI era need to understand in which layers of the so-called AI stack they can locate their own intellectual property and where they can form strategic partnerships. Building artificial intelligence, not just applying it, is becoming a mission-critical core competency.

Humans and machines in harmony

One of the most important success factors in the AI age is also to continue to put people at the center of development. We need clear points of interaction between humans and machines to ensure responsible use of artificial intelligence. Rather than thinking of people with machines, consumer and industrial goods with artificial intelligence separately, we are developing and perfecting both together in association with some of the best in the world – that is the future we are working on at Henkel.